Schrodinger price target lowered to $30 from $43 at Morgan Stanley

Morgan Stanley analyst Vikram Purohit lowered the firm’s price target on Schrodinger to $30 from $43 and keeps an Equal Weight rating on the shares. Schrodinger’s shares have continued to face downward pressure and while a significant portion of the stock-specific pressure likely relates to lower than anticipated 2024 sales guidance, the firm suspects that limited visibility into internal pipeline progress and the drug discovery portion of Schrodinger’s top-line has “also continued to moderate investor engagement,” the analyst says. The firm has revised its drug discovery projections to reflect risk-adjusted value for partnership economics for MALT1 inhibitor SGR-1505 and based on these revisions now projects peak drug discovery revenue of about $600M, down from about $750M previously, the analyst tells investors.